I anticipate changes to the structure of next years Colt's competition.
If by less teams you mean that each club will only have to field 2 Colts teams then that may have some merit. It will put less pressure on the clubs who are struggling to attract players currently (not just Parramatta and Penrith) and may redistribute some of the playing strength with clubs not able to stockpile talent while they wait to see if it will bare fruit. It will force players to consider alternate clubs as clubs won't be able to reside them in 3rd grade all season with the view to playing higher the next year or when they blood the potential 1st graders in Shute Shield in the middle of the year. It may also begin the trend towards all club sides playing at the same venue on the same day. Parramatta have been very proactive in developing their colts program for 2013 and should be relatively competetive immediately if what I hear comes to fruition.
If on the other hand, you mean they are going to reduce the number of clubs within the competition they are the dumbest administration within a sporting body you could have. The ramifications would be immense and be playing into the AFL and soccer strategy of not having a viable opposition to contend with. Those from the east who have been beating their chests about how funding should be allocated and to whom should understand that even Uni's sponsors aren't going to be happy if they are playing in an inconsequencial 4 team boutique competition with no chance of exposure to where the highest percentage of population and spendable income exists. Are they stupid enough to think the game can survive if nobody under the age of 18 is playing rugby west of Camperdown or Marsfield because that would be the longterm outcome of such a stupid move.
Sport moves in cycles as Randwick are experiencing right now, and is only as strong as its weakest link. It is every clubs resposibility to help in developing a strong couple of rugby outposts in the greater west as the first line of defence against a pair of aggressive, corporate structured and financial heavyweights or you might find yourselves not playing at all very soon.
Clubs such as Gordon, Eastwood, Randwick and Easts to name a few have been, or are in, difficult financial situations now or recently. If these clubs were to fold along with any western participation in the game then Australia's standing within international rugby would be terminal. Perhaps the greatest problems will come from within as the views expressed by a couple of small thinking individuals on this forum may well reflect those of their club aligned administrators within the SRU and NSWRU.